Control

DEFINITION of 'Control'

1. The use of power to influence an outcome. For example, working control is the ability of a minority shareholder to influence corporate decision-making when there is no dominant majority shareholder.

2. A restriction used to prevent a specified activity. For example, some domestic governments use capital controls to limit the inflow and outflow of foreign capital to the country.

3. A standard of comparison against which changes in a test subject can be measured. For example, experimental controls are test subjects to whom nothing is done so that the results of an activity performed on another group can be accurately assessed.

BREAKING DOWN 'Control'

Other types of controls you might come across in the financial world include but are not limited to accounting controls, which help a company to prepare honest and accurate financial statements; credit controls, which limit the amount of credit a company extends to less-than-ideal borrowers and quality control, a process that monitors whether a business' products or services are meeting expectations.

RELATED TERMS
  1. Working Control

    When a minority shareholder (or shareholders) has enough voting ...
  2. Controller

    An individual who has responsibility for all accounting-related ...
  3. Detective Control

    A type of internal control mechanism intended to find problems ...
  4. Direct Investment

    1. The purchase or acquisition of a controlling interest in a ...
  5. Exchange Control

    Types of controls that governments put in place to ban or restrict ...
  6. Capital Control

    Any measure taken by a government, central bank or other regulatory ...
Related Articles
  1. Professionals

    Controller: Career Path & Qualifications

    Find out what it takes to become a financial controller, starting with undergraduate educational requirements and moving into professional certification.
  2. Professionals

    Controller: Job Description & Average Salary

    Learn about becoming a controller and what the job entails. Understand the education and skills required, and how much money you can expect to make.
  3. Professionals

    Career Advice: Accountant Vs. Controller

    Learn about the differences between controllers and accountants, how the two are related and which is the best career choice for aspiring bookkeepers.
  4. Entrepreneurship

    Keeping Control of Your Business After the IPO

    Taking a company public doesn't mean founders must completely give up calling the shots. Before the IPO, consider these tactics to keep control after it.
  5. Investing Basics

    How Do Internal Controls Work?

    Essentially, internal controls limit fraud and other illegal activities.
  6. Professionals

    Common Interview Questions for Controllers

    Learn more about the job description of a financial controller and questions that may be asked of applicants applying for this position.
  7. Savings

    5 Ways To Control Emotional Spending

    Follow these five simple steps to keep your spending under control.
  8. Active Trading

    Wrath of the Shareholders

    We all know that publicly traded companies are enthralled by their stocks, but why? Here we take a look at the top 5 reasons why companies care so much about their stock prices.
  9. Economics

    Explaining Cost Control

    For a business, cost control entails managing and reducing expenses.
  10. Economics

    Explaining Quality Control

    Businesses use quality control to ensure their products and services meet a certain standard, as well as any industry regulations.
RELATED FAQS
  1. Why do investors with minority interest receive a minority interest discount and ...

    Discover why investors with minority interest usually receive a discount to the fair value of their ownership share, and ... Read Answer >>
  2. How do a corporation's shareholders influence its Board of Directors?

    Find out how shareholders can influence the activity of the members of the board of directors and even change official corporate ... Read Answer >>
  3. How much, if any, influence do non-controlling interest shareholders have?

    Examine some of the different ways non-controlling interest shareholders can exercise influence over both public and private ... Read Answer >>
  4. What rights do all common shareholders have?

    Learn what rights all common shareholders have, and understand the remedies that can be taken if those rights are violated ... Read Answer >>
  5. What is the relationship between minority interest discount and fair market value?

    Learn how to determine the fair market value and minority interest discount for the sale of a share of a closely held corporation. Read Answer >>
  6. What countries represent the largest portion of the global banking sector?

    Learn how four countries, China, the U.K., France and the U.S., exhibit the greatest influence over the global banking sector, ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center